BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE SMOKY CREEK FIELD, CHEYENNE COUNTY, COLORADO	) ) ) )	CAUSE NO.  222 ORDER NO. 222-14 2^nd AMENDED

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission at 8:30 a.m. on September 16, 1997 in the La Plata County Commissioner Hearing Room, 1060 E. 2^nd Avenue, Durango, Colorado, on the application of Murfin Drilling Company, Inc., to drill a well to be located 825 feet FSL and 660 feet FEL in the SE¼ SE¼ of Section 17, Township 13 South, Range 44 West, 6^th P.M., with a tolerance of 150 feet, at an exception location, for production of oil and associated hydrocarbons from the Mississippian Formation for the drilling and spacing unit consisting of the E½ SE¼ of said Section 17.

FINDINGS

                        The Commission finds as follows:

                        1.  Murfin Drilling Company, as applicant herein, is an interested party in the subject matter of the above-referenced matter.

                        2.  Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

                        3.  The Commission has jurisdiction over the subject matter embraced in said Notice and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

                        4. On October 15, 1968, the Commission issued Order No. 222‑1 establishing 80‑acre drilling and spacing units for the production of oil and associated hydrocarbons from the Mississippian Formation underlying certain lands including the SE¼ of Section 17, Township 13 South, Range 44 West, 6th P.M.  Said drilling and spacing units were to consist of the W½ or E½ of each quarter section according to the governmental survey thereof, with the permitted well for each such drilling and spacing unit located in the center of the NE¼ and SW¼ of each such quarter section, with a tolerance of 150 feet in any direction for surface hazards.

                        5.  At the time of the administrative hearing, testimony was presented that an exception to the permitted well location is necessary to locate the well on the Mississippian Formation structural trend and to encounter the porosity and permeability development that run northwest to southeast..

                        6.  At the time of the administrative hearing, Murfin Drilling Company agreed to be bound by oral order of the Commission.

                        7.  Based on the facts stated in the application, having received no protests to the application, and having been heard by the Hearing Officer who recommends approval of the application, the Commission should enter an order to allow the drilling of a well to be located 825 feet FSL and 660 feet FEL in the SE¼ SE¼ of Section 17, Township 13 South, Range 44 West, 6^th P.M., with a tolerance of 150 feet, at an exception location, for production of oil and associated hydrocarbons from the Mississippian Formation for the drilling and spacing unit consisting of the E½ SE¼ of said Section 17.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED that Order No. 222-1 shall be amended to allow a well to be drilled at an exception location 825 feet FSL and 660 feet FEL in the SE¼ SE¼ of Section 17, Township 13 South, Range 44 West, 6^th P.M., with a tolerance of 150 feet, for production of oil and associated hydrocarbons from the Mississippian Formation for the drilling and spacing unit consisting of the E½ SE¼ of said Section 17.

                        IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

                        IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

                        IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

                        ENTERED this        8th          day of October, 1997, as of September 16, 1997.

AMENDED this _________ day of March, 1998, as of September, 16, 1997.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                            OF THE STATE OF COLORADO

                                                                        By

                                                                                           Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

July 27, 2018